Which of the following would represent an additional term in a real estate contract?

Which of the following would represent an additional term in a real estate contract?

• A. Initial deposit
• B. Term length
• C. Amendment
• D. Addendum

Answer: (D)

An addendum is an additional term that is added to a real estate contract after the original agreement has been executed. It serves to include new provisions or modify existing terms of the contract without completely rewriting it. By its nature, an addendum expands on the original agreement, providing clarity or supplementing details that were not included initially. While terms like an initial deposit or term length are essential components of the contract, they usually appear as fundamental elements rather than modifications or additions. An amendment, similar to an addendum, refers to a formal change or correction of existing terms rather than the addition of new ones. Therefore, the concept of an addendum specifically aligns with the idea of introducing new terms or conditions to the real estate contract, making it the correct option in this context.

An addendum is an additional term that is added to a real estate contract after the original agreement has been executed. It serves to include new provisions or modify existing terms of the contract without completely rewriting it. By its nature, an addendum expands on the original agreement, providing clarity or supplementing details that were not included initially.

While terms like an initial deposit or term length are essential components of the contract, they usually appear as fundamental elements rather than modifications or additions. An amendment, similar to an addendum, refers to a formal change or correction of existing terms rather than the addition of new ones. Therefore, the concept of an addendum specifically aligns with the idea of introducing new terms or conditions to the real estate contract, making it the correct option in this context.